In a trading update to the stock exchange today (May 4), the retail platform posted revenue of £188mn for Q1, a 28 per cent increase on the previous three months.
Client numbers continued to rise, with 23,000 new users in the quarter, and share dealing volumes averaged 770,000 per month, a 23 per cent jump on the previous quarter.
Assets under management grew to £132bn, boosted by the inflows as well as £3.3bn worth of positive market movements.
Clients lowered their cash volumes, instead investing in funds, shares and through active savings accounts.
HL’s cash holdings dropped from just over £14bn to £13.5bn, while funds rose £1bn to £61.6bn and shares rose nearly £3bn to £49.8bn.
Chris Hill, chief executive officer at HL, said: “Macroeconomic uncertainty continues but the improved activity demonstrates that as confidence returns, HL is well positioned to grow and support new and existing clients on their investment and savings journeys.”
Analysts at Numis said the platform had shown a “solid performance in difficult market conditions”.
They added that the company will benefit from the government’s work towards losing the advice gap, which is the gap between those who receive financial advice and those who want it.
“One of the core pillars of the HL growth strategy is augmented advice.
“We believe that the greater flexibility to assist customers with their financial planning will be of great use in achieving this goal.”